City Telecom (H.K.) Limited (ADR) (NASDAQ:HKTV)

CAPS Rating: 1 out of 5

Provides international telecommunications and, through HKBN, international telecommunications, Internet access, local telephony, pay-TV and other fixed telecommunications network services in Hong Kong.

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Member Avatar EvanBuck (99.84) Submitted: 12/6/2014 4:42:12 PM : Underperform Start Price: $9.04 HKTV Score: -1.65

Went to check SEC filings, and they are few and far between. Can't find the info I am looking for regarding revenue, etc. so the seeming lack of transparency is a big red flag. Plus it's China-based, which is notorious for its stock scams, and jed71 downthumbed it. Underperform.

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Member Avatar jed71 (88.74) Submitted: 12/5/2014 11:56:18 AM : Underperform Start Price: $9.04 HKTV Score: -1.65

I don’t know why I chose not to down thumb this at $11 a few days ago when I researched it. I spent a bunch of time reading about it, it seemed a very good down thumb yet my undiagnosed ADD apparently disagreed and it slipped off of my radar. When I was tooling around the market this morning, I stumbled across it and, for a change, remembered some of my old research. Unfortunately, it’s already fallen to the 9’s but my thinking is it still has some ways to go. Here is the best way I can summarize the business plan (out of the recent financial filing):

“In short, we are now in full force, full speed to ready our launch and we look forward to meeting everyone on our Shoppertainment journey in 2014. Let’s shop and watch together.”

I am not an expert on the Honk Kong broadcast market, but this seems flat out weird. They are attempting to combine private label in-house programming with a shopping website. You watch a TV show and then browse lady's shoes (I think I found a new use for the name Ultimate Rack)? Just seems strange they are attempting to put the two together. The CEO readily admits it’s never been done before and represents a big risk. If you look at the viewership and number of downloads, the figures are not very impressive. But like I said, this might appeal to Hong Kong natives and I may be missing something. Help me out here, but this next section isn’t very good news, right?

“2014 is still a year of preparation for HKTV. While we are still waiting for the Court’s judgment on the two Judicial Review cases on the rejection of our domestic free television programme service licence (the free TV licence) application and the transmission standard for mobile TV service, the Group is going to launch its new business by phases starting from mid-November ? building a new platform for TV entertainment and online shopping on the Internet, the HKTV Mall.”

I am guessing this isn’t good news, but maybe smarter minds will disagree. Remember that this license was applied for in 2009 and they have yet to receive it. While there’s a chance that they might get the license, I think the situation looks bleak based on the fact that after 6 years they still have not obtained it.

So the stock has shot higher over the past month and a half going from the $7’s to the high $11’s. I think most of this is sheer speculation and the company has confirmed no additional news on a number of occasions.

“a. Increase in write off of artiste prepayments and provision for committed artiste payments of HK$19.0 million due to the under-utilisation during the period, and provision made for onerous commitments which do not expect to be utilized because of programme production slow down and suspension;
b. Uncapitalised talent costs increased by HK$21.5 million as a result of the reduction in capitalisation due to the programme production slow down and suspension, partially net off by the saving in talent costs resulted from the redundancy made in October 2013 and April 2014;”

It’s obvious they are cutting costs and reducing talent for their broadcasting. They have also slashed current and planned future content. What should scare shareholders the most is expenses have INCREASED because of the contractual obligations the company has with its hired talent.

“Increase in other operating expenses by HK$44.1 million to HK$245.6 million for the twelve months ended 31 August 2014”

I’ll end with this last piece. They are cutting costs and trying to salvage what cash they have left:

“Including the directors of the Company, as at 31 August 2014, the Group had 283 permanent full-time talents versus 527 as of 31 August 2013. The decrease in number of talents was mainly due to the lay-off plan announced on 16 October 2013 and 11 April 2014 due to business and operation scale down on Multimedia Business in particular on the programme production, which was partially off-set by the new hiring for the Shoppertainment.”

This probably won’t go to zero anytime soon, but the situation does look bleak. I would personally avoid this firm.

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Member Avatar FoxForce5contest (< 20) Submitted: 8/20/2012 2:36:35 AM : Outperform Start Price: $4.31 HKTV Score: +67.01

iamlard
picked this

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Member Avatar MoneyDocSchloss (69.28) Submitted: 7/12/2012 8:45:39 PM : Outperform Start Price: $4.19 HKTV Score: +64.39

High yielding telecom based in Hong Kong. It's unclear exactly what that yield will be, but I believe there's good chance it will continue to be good, even if it is "only" 6-7%. Balance sheet looks solid, 230M in net tangible assets. Yet the mkt cap (the "price tag") is only 172M.

Yahoo Finance says EV/EBITDA is 1.98. If that's true, then that is unbelievably cheap.

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Member Avatar birdup (53.30) Submitted: 12/6/2011 7:06:47 PM : Outperform Start Price: $3.42 HKTV Score: +103.55

seeking alpha

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Member Avatar StocksForCash (< 20) Submitted: 8/10/2010 3:40:51 PM : Outperform Start Price: $3.43 HKTV Score: +83.84

turning ?

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Member Avatar et6969 (< 20) Submitted: 4/26/2010 12:54:39 PM : Outperform Start Price: $4.82 HKTV Score: +20.37

well run company, nice dividend

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Member Avatar cw33wc (85.09) Submitted: 4/7/2010 12:42:48 AM : Outperform Start Price: $5.33 HKTV Score: -2.14

Seems to have HK locked down.

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Member Avatar Br0oklyn (< 20) Submitted: 3/29/2010 3:41:17 PM : Outperform Start Price: $4.80 HKTV Score: +14.73

Provides International telecommunications..

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Member Avatar Flitt12 (94.37) Submitted: 3/17/2010 10:31:40 AM : Outperform Start Price: $3.54 HKTV Score: +82.25

Screener:
ROE > 10%
LT Debt - Equity < 50%
Dividend > 5%
Price-to-Book < 3
================
EBITDA Growing?: Check
Months of EBITDA to pay:
(LT Debt - Cash) - 0
Dividend - 1

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Member Avatar mrmookie123 (35.54) Submitted: 1/17/2010 11:24:18 AM : Outperform Start Price: $3.76 HKTV Score: +61.62

Fantastic Financials.

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Member Avatar JackOfManyTrades (98.04) Submitted: 1/13/2010 8:49:51 PM : Outperform Start Price: $3.87 HKTV Score: +56.53

Great service, minimal prices.

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Member Avatar Húshuobadào (34.98) Submitted: 5/20/2009 3:58:05 AM : Outperform Start Price: $1.21 HKTV Score: +531.56

City Telecom HK Ltd.(NASDAQ:CTEL)
City Telecom, together with its subsidiaries, provides residential and corporate fixed network, and international telecommunications in Hong Kong and Canada.

Recs

5
Member Avatar dsp2008 (76.77) Submitted: 5/20/2008 8:12:16 PM : Outperform Start Price: $1.48 HKTV Score: +469.52

I live in Hong Kong and City Telecom is a leader there in terms of business internet service as well as now increasing its number of residential users and taking market share from PCCW. Provides the fastest residential internet service in the world and has now secured a deal with a consortium to build and service the same kind of infra-structure needed in Singapore.

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Member Avatar qubit16 (95.66) Submitted: 12/3/2007 9:55:28 PM : Underperform Start Price: $1.44 HKTV Score: -492.11

od

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Member Avatar craterbaiter (< 20) Submitted: 10/17/2007 5:10:35 AM : Underperform Start Price: $2.21 HKTV Score: -276.08

Frenetic share dealing in CTEL in HK and USA created by typical HK rumour and speculative press reporting [ self advertising by company ?] boomed and busted in a couple of days ..and self serving justification by correspondents referring to speculative reporting on possible 3G licence partnerships -after the event- will not improve the asset value/profitability of this company, even the cash flow is not impressive. [ But the take home pay of the Directors is ! ]

There is simply not enough upside to the business in a flat or recessive economy in HK, and the China bubble is looking perilous..

HKD is undervalued to USD peg [ as is the Reminbi ] interest rates are silly, property values and rentals are ludicrous, and corruption is rife. Otherwise HK is a great place to live.

Stock market speculation is reaching fever pitch in China/Hong Kong with lots of loose money from China flooding the HKE - HK Chinese traditionally treat the stock market as an extension of the Macau casinos and when confidence slips, they run like the wind.. Be prepared for tears and a rapid improvement in P/E & dividend appreciation in the markets ..lol

craterbaiter

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Member Avatar witocomp (< 20) Submitted: 10/16/2007 3:07:47 PM : Outperform Start Price: $2.06 HKTV Score: +305.63

Good operational plans, healthy balance sheet, better revenues, promising propspect, excellent products & sevices offered.

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Member Avatar easymoney62 (< 20) Submitted: 10/12/2007 5:53:43 PM : Outperform Start Price: $2.38 HKTV Score: +246.90

ctel is a super strong china stock and a bagain at 12.00$ a share!! with a constant influx of new customers for broadband hook-up and pay-television service its a nolose stock, already paying a decent dividend at early stages of its climb to massive new subscribers in hong-kong CHINA, where everyone will be hooked-up for the upcoming 2008 olympics. they have the resources in place and a award winning management team that will prove they are ready to provide a quality broadband/pay television service to the many numbers of people in hong-kong china

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Member Avatar ColoHunter78 (< 20) Submitted: 10/11/2007 4:41:07 PM : Underperform Start Price: $2.71 HKTV Score: -199.46

Where is the news????...

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Member Avatar maharaja1 (32.55) Submitted: 10/11/2007 1:58:07 PM : Underperform Start Price: $3.56 HKTV Score: -120.08

I think this stock is getting way ahead of itself. Should start falling by end of the weeek.

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